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constructive fraud

n. when the circumstances show that someone's actions give him/her an unfair advantage over another by unfair means (lying or not telling a buyer about defects in a product, for example), the court may decide from the methods used and the result that it should treat the situation as if there was actual fraud even if all the technical elements of fraud have not been proven.

See also: constructive 



The People's Law Dictionary by Gerald and Kathleen Hill Publisher Fine Communications